Industry reacts to 2015 Budget
Following the delivery of chancellor George Osborne’s final Budget before the UK general election, Food & Drink Technology has rounded up the mixed responses from the food and drink industry.
Jim Moseley, interim director general at the Food and Drink Federation (FDF), says, “The focus on business and support for manufacturing announced in the Budget is to be welcomed. Contributing £81.8 billion in turnover, responsible for feeding millions and employing 400,000 across the country, food and non-alcoholic drink manufacturing is at the heart of the recovering national economy. The drop in corporation tax, promise of increased investment funding and support for British farmers will be supported by food and drink manufacturers large and small.
“The doubling of UKTI export support targeting the flourishing Chinese market is a positive move, but FDF would like to see more backing for exporting food and drink companies to bring us into line with our European neighbours. Food and drink exports have continually delivered year on year growth, bucking the total UK exports trend, and offer huge untapped potential.
“Increased funding for Innovate UK is a positive move but access remains a major barrier. Simplification of the innovation funding landscape to ease access would be beneficial, not least for small and medium-sized firms who make up 96.5% of UK food and drink manufacturing. Plans announced to make R&D tax credits easier to access are certainly a step in the right direction.
“Plans to abolish National Insurance for under 21s this April and young apprentices next April are welcome. FDF is calling on the government to go further and extend this to adult apprenticeships which are most needed in the UK’s largest manufacturing sector – food and drink. FDF has committed to increasing higher level technical apprenticeships in this high-tech, world leading industry sector by 20% by 2017. FDF will continue to work with government and partners to evolve the apprenticeship model so that it meets the needs of our sector and workforce. Measures announced yesterday to put apprenticeship funding in the hands of employers via ‘apprenticeship vouchers’ are a welcome move from the chancellor.”
NFU president, Meurig Raymond, says, “We are very pleased that Mr Osborne said that he had listened to the arguments by the NFU and will allow farmers to average their incomes over five years. As he mentioned in his speech, farmers are increasingly facing a volatile marketplace and this will enable them to manage the impacts of this.
“News that the annual investment allowance will be addressed in his Autumn Statement is also welcome. As he mentions, £25,000 is not an acceptable level which would encourage on-farm investment and we will await further announcements with interest.
“The NFU also believes the changes to the ISA system will allow more flexibility in accessing funds without losing the benefits of tax relief; and that our members who supply the drinks industry will also welcome a cut in alcohol duty for cider, beer and spirits.”
On the decision to cut excise duty on spirits by 2%, David Frost, Scotch Whisky Association chief executive, says, “This is a historic decision and only the fourth time whisky duty has been cut in a century.
“The chancellor’s announcement will be toasted across the whisky industry and by consumers who are getting a fairer deal on tax when they have a drink of Scotch. The move is a major boost to our industry as we look to grow again in the UK, and equally sends out an important signal on fair taxation to our export markets.
“The industry is raising a glass to George Osborne and his treasury team, as well as to all those who have supported our campaign over the last two decades.”
Frederic Landtmeters, managing director, Molson Coors (UK & Ireland), says, “The announcement that beer duty will be cut for the third consecutive year is historic, and a move warmly welcomed by Molson Coors.
“As an industry which contributes £10 billion in taxation each year, it is great to see that the government continues to recognise just how important the beer and pub industry is to the wider economy.
“The successive duty cuts have not only given a much needed boost to beer drinkers across the UK, but have helped the wider industry benefit from extra investments – including over 16,000 new jobs created within the sector. We hope that the government continues to work in partnership with our industry to build on these successes.”
Martin Thatcher, chair of the National Association of Cider Makers, says, “We are delighted that the chancellor has decided to support the British cider industry by cutting duty in his Budget statement. This is a very welcome decision and proves the government understands the huge importance of our industry to rural communities.
“This important decision will be celebrated by cider makers up and down the country as it protects the investment they have made over many years to grow the industry and support thousands of jobs.
“We and all cider drinkers will be raising a glass of delicious cider to the chancellor this evening.”
